Weapons of Mass Destruction (WMD)

Further Reading

Title: "Clinton Executive Order Banning Trade with Iran Issued." Executive order signed by President Clinton banning all US trade with Iran. Includes a letter to Congress
regarding the order. (950508)

Date: 19950508

Text:*NEA105

05/08/95
CLINTON EXECUTIVE ORDER BANNING TRADE WITH IRAN ISSUED
(Text: Executive Order, Letter to Congress, 5/8/95) (2000)
Washington -- The White House issued May 8 the text of the "executive order"
from President Clinton probibiting U.S. trade and investment with Iran in
response to the Tehran government's "sponsorship of international terrorism
and its active pursuit of weapons of mass destruction."

The U.S. action, which gives American companies 30 days to end their
contractual relationships with the Iranian government, was also detailed in
identical letters from President Clinton to the Speaker of the House of
Representatives and to the president of the U.S. Senate.

Following are the texts of the letter and the executive order to the
Congressional leaders:

(Begin text of letter)
Dear Mr. Speaker: (Dear Mr. President):
On March 15, 1995, I reported to the Congress that, pursuant to section
204(b) of the international Emergency Economic Powers Act (50 U.S.C.
1703(b)), and section 301 of the National Emergencies Act (50 U.S.C. 1631),
I exercised my statutory authority to declare a national emergency to
respond to the actions and policies of the Government of Iran and to issue
an Executive order that prohibited United States persons from entering into
contracts for the financing or the overall management or supervision of the
development of petroleum resources located in Iran or over which Iran
claims jurisdiction.

Following the imposition of these restrictions with regard to the
development of Iranian petroleum resources, Iran has continued to engage in
activities that represent a threat to the peace and security of all
nations. I have now taken additional measures to respond to Iran's
continuing support for international terrorism, including support for acts
that undermine the Middle East peace process, as well as its intensified
efforts to acquire weapons of mass destruction. I have issued a new
Executive order and hereby report to the Congress pursuant to the above
authorities and section 505(c) of the International Security and
Development cooperation Act of 1985 (22 U.S.C. 2349aa-9(c)).

The new order I have issued with respect to Iran:
-- Prohibits exportation from the United States to Iran or to the government
of Iran of goods, technology or services, including trade financing by U.S.
banks;

-- Prohibits the reexportation of certain U.S. goods and technology to Iran
from third countries;

-- Prohibits transactions such as brokering and other dealing by United
States persons in Iranian goods and services;

-- Prohibits new investments by United States persons in Iran or in property
owned or controlled by the Government of Iran;

-- Prohibits U.S. companies from approving or facilitating their
subsidiaries -- performance of transactions that they themselves are
prohibited from performing;

-- Continues the 1987 prohibition on the importation into the United States
of goods and services of Iranian origin; and

-- Allows U.S. companies a 30-day period in which to perform trade
transactions pursuant to contracts predating this order that are now
prohibited.

With the exception of the trade noted above, all prohibitions contained in
the Executive order are effective as of 12:01 a.m., eastern daylight time,
on May 7, 1995.

This new order provides that the Secretary of the Treasury, in consultation
with the Secretary of State, is authorized to take such actions, including
the promulgation of rules and regulations as may be necessary to carry out
the purposes of the order. The order also authorizes the Secretary of the
Treasury to require reports, including reports on foreign affiliates' oil
trading with Iran. There are certain transactions subject to the
prohibitions contained in the Executive order that I have directed the
Secretary of the Treasury to authorize through licensing, including
transactions by United States persons related to the Iran-United States
Claims Tribunal in The Hague, established pursuant to the Algiers Accords,
and other international obligations and United states Government functions.
Such transactions also include the export of agricultural commodities
consistent with section 5712(c) of title 7, United States Code. In
addition, United States persons may be licensed to participate in
market-based swaps of crude oil from the Caspian Sea area for Iranian crude
oil in support of energy projects in Azerbaijan, Turkmenistan, and
Kazakhstan.

This order revokes sections 1 and 2 of Executive Order No. 12613 of October
29, 1987, and sections 1 and 2 of Executive Order No. 12957 of March 15,
1995, to the extent they are inconsistent with this order. The declaration
of national emergency made by Executive Order No. 12957 remains in effect
and is not affected by this order.

Sincerely,
WILLIAM J. CLINTON
(End text of letter)
(Begin text of executive order)
PROHIBITING CERTAIN TRANSACTIONS WITH RESPECT TO IRAN
By the authority vested in me as President, by the Constitution and the laws
of the United States of America, including the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National
Emergencies Act (50 U.S.C. 1601 et eq.), section 505 of the International
Security and Development Cooperation Act of 1985 (22 U.S.C. 2349aa-9)
(ISDCA), and section 301 of title 3, United States Code,

I, WILLIAM J. CLINTON, President of the United States of America, in order
to take steps with respect to Iran in addition to those set forth in
Executive Order No. 12957 of March 15, 1995, to deal with the unusual and
extraordinary threat to the national security, foreign policy, and economy
of the United States referred to in that order, hereby order:

Section 1. The following are prohibited, except to the extent provided in
regulations, orders, directives, or licenses that may be issued pursuant to
this order, and notwithstanding any contract entered into or any license or
permit granted prior to the effective date of this order: (a) the
importation into the United States, or the financing of such importation,
of any goods or services of Iranian origin, other than Iranian-origin
publications and materials imported for news publications or news broadcast
dissemination;

(b) except to the extent provided in section 203(b) of IEEPA (50 U.S.C.
1702(b)), the exportation from the United States to Iran, the Government of
Iran, or to any entity owned or controlled by the Government of Iran, or
the financing of such exportation, of any goods, technology (including
technical data or other information subject to the Export Administration
Regulations, 15 CFR Parts 768-799 (1994) (the "EAR")), or services;

(c) the reexportation to Iran, the Government of Iran, or to any entity
owned or controlled by the Government of Iran, of any goods or technology
(including technical data or other information) exported from the United
States, the exportation of which to Iran is subject to export license
application requirements under any United States regulations in effect
immediately prior to the issuance of this order, unless, for goods, they
have been (i) substantially transformed outside the United States, or (ii)
incorporated into another product outside the United States and constitute
less than 10 percent by value of that product exported from a third
country;

(d) except to the extent provided in section 203(b) of IEEPA (50 U.S.C.
1702(b)), any transaction, including purchase, sale, transportation, swap,
financing, or brokering transactions, by a United States person relating to
goods or services of Iranian origin or owned or controlled by the
Government of Iran;

(e) any new investment by a United States person in Iran or in property
(including entities) owned or controlled by the Government of Iran;

(f) the approval or facilitation by a United States person of the entry into
or performance by an entity owned or controlled by a United States person
of a transaction or contract (i) prohibited as to United States persons by
subsection (c), (d), or (e) above, or (ii) relating to the financing of
activities prohibited as to United States persons by those subsections, or
of a guaranty of another person's performance of such transaction or
contract; and

(g) any transaction by any United States person or within the United States
that evades or avoids, or has the purpose of evading or avoiding, or
attempts to violate, any of the prohibitions set forth in this order.

For the purposes of this order:
(a) the term "person" means an individual or entity;
(b) the term "entity" means a partnership, association, trust, joint
venture, corporation, or other organization;

(c) the term "United States person" means any United States citizen,
permanent resident alien, entity organized under the laws of the United
States (including foreign branches), or any person in the United States;

(d) the term "Iran" means the territory of Iran and any other territory or
marine area, including the exclusive economic zone and continental shelf,
over which the Government of Iran claims sovereignty, sovereign rights or
jurisdiction, provided that the Government of Iran exercises partial or
total de facto control over the area or derives a benefit from economic
activity in the area pursuant to international arrangements; and

(e) the term "new investment" means (i) a commitment or contribution of
funds or other assets, or (ii) a loan or other extension of credit.

Sec 3. The Secretary of the Treasury, in consultation with the Secretary of
State, is hereby authorized to take such actions, including the
promulgation of rules and regulations, the requirement of reports,
including reports by United States persons on oil transactions engaged in
by their foreign affiliates with Iran or the Government of Iran, and to
employ all powers granted to the President by IEEPA and ISDCA as may be
necessary to carry out the purposes of this order. The Secretary of the
Treasury may redelegate any of these functions to other officers and
agencies of the United States Government. All agencies of the United
States Government are hereby directed to take all appropriate measures
within their authority to carry out the provisions of this order.

Sec. 4. The secretary of the Treasury may not authorize the exportation or
reexportation to Iran, the Government of Iran, or an entity owned or
controlled by the Government of Iran of any goods, technology, or services
subject to export license application requirements of another agency of the
United States Government, if authorization of the exportation or
reexportation by that agency would be prohibited by law.

Sec. 5. Sections 1 and 2 of Executive Order No. 12613 of October 29, 1987,
and sections 1 and 2 of Executive Order No. 12957 of March 15, 1995, are
hereby revoked to the extent inconsistent with this order. Otherwise, the
provisions of this order supplement the provisions of Executive Orders No.
12613 and 12957.

Sec. 6. Nothing contained in this order shall create any right or benefit,
substantive or procedural, enforceable by any party against the United
States, its agencies or instrumentalities, its officers or employees, or
any other person.

Sec. 7. The measures taken pursuant to this order are in response to actions
of the Government of Iran occurring after the conclusion of the 1981
Algiers Accords, and are intended solely as a response to those later
actions.

Sec. 8. (a) This Order is effective at 12:01 a.m., eastern daylight time, on
May 7, 1995, except that (i) section 1(b), (c), and (d) of this order shall
not apply until 12:01 a.m., eastern daylight time, on June 6, 1995, to
trade transactions under contracts in force as of the date of this order if
such transactions are authorized pursuant to Federal regulations in force
immediately prior to the date of this order ("existing trade contracts"),
and (ii) letters of credit and other financing agreements with respect to
existing trade contracts may be performed pursuant to their terms with
respect to underlying trade transactions occurring prior to 12:01 a.m.,
eastern daylight time, on June 6, 1995.

(b) This order shall be transmitted to the Congress and published in the
Federal Register.